Question

Tyler took out a loan at a 17.7% , compounded monthly, to buy a boat and he is making monthly payments to pay off the loan.which of these interests rates but I've allowed Tyler to pay off the loan faster? A. 16% compounded monthly B.15.2% compounded monthly C. 14.4% compounded monthly D.15.0% compounded monthly

Answer 1

The interest rate that would have allowed Tyler to pay off the loan faster is the smaller interest rate, since the interest he would need to pay more is smaller.

Among the four options, the smaller interest is 14.4%, so the correct option is C.